BILLINGS - Billings city officials are preparing to send courtesy letters to short-term rental owners if they have a property that’s not in compliance with city code.
City officials said in a press release issued Monday that a short-term rental (STR) permit and a city business license are required to operate residential rentals that offer stays of less than 30 days.
City officials have identified more than 300 properties that are in violation of the permit requirement.
The short-term rental ordinance was adopted in 2021 to minimize the negative impacts of such properties on neighborhoods, maintain neighborhood zoning requirements, and provide equity among lodging options.
The STR permit application also requires a local contact who can respond to complaints or issues involving the property.
“The local contact cannot be a corporation; it must be a person," said Billings Planning Division Manager Anna Vickers. "While the property could be owned by an LLC or corporation, the permit contact is a person. This helps us communicate about any complaints or issues we receive from the neighbors or public about the STR.”
A city business license for a first-time short-term rental currently costs $55, and a STR permit costs $300. Both must be renewed annually.
Courtesy letters are scheduled to go out the week of March 10. Property owners will have 60 days to come into compliance before their property is referred to the Code Enforcement Division for further action.
Those who fail to obtain a city business license and a STR permit may be cited into municipal court for a municipal infraction and could be subject to civil penalties, the press release states. Each day that a violation occurs is a separate offense. The first offense penalty is $300. Each additional day is considered a new violation increasing to up to $500.
“We are hopeful that by sending these courtesy letters, property owners who perhaps did not know about the ordinance will make the decision to obtain the necessary license and permit going forward," Vickers said. "We are not collecting backpay for previously missed registration fees. We are hopeful to avoid any violations and penalties.”
The city uses software that scans STR websites and cross-checks it with city data to identify properties not registered.
When filling out the permit application, property owners must acknowledge a list of about a dozen terms. Those include not renting the property for large parties or gatherings, acknowledging City of Billings noise regulations, and that their property has met safety requirements, among others.
